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Medicaid Bill Could Stifle, Close Pharmacies

POSTED: Thursday, June 5, 2008
UPDATED: 12:41 am CDT June 6, 2008

A new law that would decrease the amount of money reimbursed to pharmacies by Medicaid may have unintended victims -- particularly independent pharmacies and the customers who frequent them.

The Ortiz Pharmacy on the 1800 block of Castroville Road has been serving customers for more than 70 years, according to its owners, but the law that would lessen aid reimbursements would have pharmacies paying the difference out of its coffers.

"On average, we would be reimbursed 36 percent less than what we actually purchase the medicine for," said Alex Ortiz, who has been working alongside her father for years.

She said chain pharmacies like Walgreens and CVS can take the hit because of its additional income from retail sales, but for the independent pharmacy, it could be devastating for the store and its customers.

One customer of the pharmacy said he won't get the same service he's received at the Ortiz Pharmacy for more than 30 years at a retail location.

"If (his 86-year-old father) were to go deal with the Walgreens or bigger stores, it would be hard for him," David Trinidad said.

Hope is not lost for the customers of Ortiz Pharmacy and others like them, though, as about 200 lawmakers are trying to stop this planned law, according to Rep. Charles Gonzalez of San Antonio.

"I am committed to continue advocating on their behalf on this issue and I'm hopeful that this situation will be rectified soon," Gonzalez wrote in a statement to KSAT 12 News.

The congressman has signed on to support a bill called the Saving Our Community Pharmacies Act, which would provide a fair reimbursement rate for generic drugs, according to the bill information at the Library of Congress' Web site.
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